NYC state leaders reject MTA's $65b capital plan, demand revisions

State Assembly and Senate leaders have rejected the Metropolitan Transportation Authority’s (MTA) $65 billion capital plan, citing a significant funding deficit and forcing further negotiations when the Legislature reconvenes in January.

In a letter sent to MTA Chair and CEO Janno Lieber, Senate Leader Andrea Stewart-Cousins and Assembly Leader Carl Heastie expressed concerns about the plan’s funding gap, which they estimate to be at least $33 billion.

“The proposed Program currently faces a significant funding deficit, generally recognized to be at least $33 billion of the $65 billion proposed total subject to CPRB approval, which is a specific concern that needs to be addressed before we can approve the Program,” the letter stated.

This rejection comes just as the MTA cleared key legal hurdles for congestion pricing, scheduled to begin on January 5. While the MTA board approved the capital plan in September, it still required approval from the Capital Program Review Board, which is made up of state legislative leaders and others. The board’s rejection is rare, as such plans typically lapse into approval.

MTA officials responded, emphasizing the importance of the plan in funding transformative infrastructure projects. “This plan will unlock dozens of transformative projects – many of which are funded and ready to go on January 1st. We remain optimistic that the legislature will join the governor in supporting safer, more reliable, and expanded transit,” the MTA said in a statement.

However, some legislators, like Queens state Sen. John Liu, expressed frustration over the lack of clarity in funding. “They came up with a plan that is a good plan, no question, but more than half of the plan lacked a funding source,” Liu said.

Governor Kathy Hochul’s office voiced support for the MTA’s vision but called for the Legislature’s input on which projects should be deprioritized. “The MTA has laid out a comprehensive plan to improve subway service, support suburban commuter rail, improve safety, crack down on fare evasion, and fund new projects like the Interborough Express,” the governor’s office stated.

I’m Liu, however, criticized the process, adding, “To say that it’s now upon the legislature to figure out which projects to deprioritize when the executive budget hasn’t even come out to discuss how the governor plans to fund the MTA budget, that’s beyond the pale.” Despite disagreements, many legislators agree that the projects in the capital plan are crucial, with MTA leadership indicating that expansion projects would be the first to be cut if necessary.